The static budget, at the beginning of the month, for Amira Company follows:
Static budget:
Sales volume: 1000 units; Sales price: $70.00 per unit
Variable costs: $32.00 per unit; Fixed costs: $36,800 per month
Operating income: $1200
Actual results, at the end of the month, follows:
Actual results:
Sales volume: 980 units; Sales price: $74.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $34,600 per month
Operating income: $3620
Calculate the flexible budget variance for fixed costs.
A) $2200 U
B) $2200 F
C) $0
D) $3180 F
B) $2200 F
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